We went to the federal district court in San Francisco yesterday to observe the first hearing in SEC v. Luca International Group and Yang Bingqing, et al. The hearing was to hear SEC's motion for preliminary injunction against all Luca entities, Yang Bingqing and other defendants.
Prior to the hearing, all defendants except Yang had stipulated to the injunction and the judge had entered order against them.
Judge granted SEC's motion at yesterday's hearing against Yang Bingqing and at the request of the SEC and Yang's attorneys, judge ordered the parties to negotiate how Ms. Yang could use her money to pay her attorneys. The SEC lawyer initially asked the court to freeze all of her funds so that she could not even has money to pay her lawyer. Ms. Yang was also ordered to get all of her money outside of the U.S. back to the United States.
Below is the minute entry after the hearing.
Minute Entry for proceedings held before Hon. Charles R. Breyer: Motion Hearing held on 9/2/2015 re 13 MOTION for Preliminary Injunction and Related Relief filed by Securities and Exchange Commission. Motion is granted, parties are to negotiate the issue regarding funds for attorney fees. SEC to submit a new proposed order. Matter continued to 10/9/2015 on the motion to stay which was previously noticed for hearing.
Court Reporter: Rhonda Aquilina.
Plaintiff Attorney: John Yun, Sheila O'Callaghan.
Defendant Attorney: Garrick Lew.
Yang's lawyer filed a motion to stop the SEC lawsuit against Yang on the ground of her fifth amendment right against self incrimination due to the pending grand jury investigation. A hearing has been set for this motion for October 9, 2015. SEC will oppose Yang's motion.